STANDARD SUMMARY PROJECT FICHE

Transcription

1 STANDARD SUMMARY PROJECT FICHE 1. Basic Information 1.1 Désirée Number LE Title: Inspection infrastructure at seaports and railroad border crossings 1.3 Sector: Customs / Justice and Home Affairs including Border Control 1.4 Location: Republic of Latvia, Riga, Daugavpils, Liepaja, Rezekne, Ventspils 1.5 Responsible institution: Ministry of Finance 1.6 Owner of the project: Ministry of Finance Contact person: Ms. Inta Vasaraudze, Deputy State Secretary, Ministry of Finance; Smilsu 1, Riga Latvia, LV-1050; phone , fax Objectives 2.1 Overall Objective: Ensure proper functioning of controls at future EU external borders. 2.2 Project purpose: Equipping seaports and railroad border crossings to perform customs, veterinary and phytosanitary inspections. 2.3 Accession Partnership and NPAA priority: Accession Partnership - Internal market: Medium term - develop an integrated tariff and apply simplified procedures; reinforce administrative and operational capacity; develop efficient border posts; Accession Partnership - Agriculture Short term - Continue alignment of veterinary and phytosanitary legislation and upgrade inspection arrangements, in particular at the future outer EU borders. Medium term - Veterinary and phytosanitary sector - complete inspection system on future outer EU borders. NPAA Construction of new border control posts and modernisation of the existing ones (LS- 002, Modernisation of the State Revenue Service); Develop Ministry of Agriculture administrative capacity (LA 029, Securing observance of quality and safety requirements according to EU standards, thus contributing to the competitiveness of relevant products); Elaboration of action plan for improvement of the national food quality control system (LA -16, LA-17). 3. Description 3.1 Background and justification: The favorable geographical location of Latvia is the basis for rapid development of transit between the East and the West. It is essential that an appropriate customs and sanitary border control infrastructure is in place in order to establish favorable climate for the trade, equal market opportunities and efficient control measures. The task to develop customs and Sanitary border control infrastructure is especially important taking into account the fact that the eastern border of Latvia is going to be the future

2 external border of the European Union. It will carry quite a large portion of the future trade between the EU and the third countries. The well-developed railway network is one of the most frequently used transportation ways of goods. The movement of freights by railways is taking place both to East and West. Railway is mainly used for transportation of transit freights from the countries of CIS to the ports of Latvia, and vice versa. In addition, the width of railway tracks in Latvia complies with that existing in the countries of CIS, therefore, it may be foreseen that the well-developed railway network will be used for freight transportation also in the future. The railroad provides 3% of all exports, 9% of all imports and 36% of transit of all means of transport. The most important points are Daugavpils Commodity station, Rezekne Commodity station both located on the Eastern border and Riga Skirotava customs point. Daugavpils and Rezekne railroad points are the first inland points where the customs, phytosanitary and veterinary control is carried out when goods enter Latvia from Russia and Belarus. Riga railroad point is very important route because this is the central point where all railroads link together and most of the customs clearance takes place. For example in comparison with land customs control points the turnover for the railroad customs points is more than 10 times higher while the number of declarations is nearly the same. Therefore it is very important to have appropriate equipment in order to perform also a physical examination if necessary. The largest seaport in Latvia is Ventspils with the turnover of 34 million tons in Riga seaport with 12 million tons is the second largest seaport in Latvia and one of the largest and the most important seaports in the Baltics. It is a significant route between the East and the West. Riga seaport comprises several parts such as Riga Free port, Riga Passenger port, Vessel repair, Oil terminal, Fishing port and others all covered by a total number of 24 customs points. The number of customs personnel in these points is 112. It is approximately 6.6% of all customs personnel in Latvia. Unlike the Ventspils that is specialised in transport of liquid cargo, mainly oil products (76%), dry cargo (18%) and only few general cargo (6%) Riga seaport is more differentiated and therefore more appropriate for the pre-arrival shipment control system to be introduced. In Riga seaport in year 1999 the rate of general cargo was 65%, dry cargo 22% and liquid cargo 13%. The quantity of cargo received in 1999 reaches 2.8 million tons and quantity consigned 9.2 million tons. The number of vessels served reaches over 4000 per year. The third largest seaport is Liepaja with turnover of 0.9 million tons. At this stage, the existing control premises at these points do not correspond to the European Union requirements for implementing customs, veterinary and phytosanitary control. Due to inappropriate equipment, effective customs, veterinary and phytosanitary control can not be carried out, smuggling rates are high, time of cargo control is long and staff working environment is unsatisfactory. Upon accession, Latvia will be obliged to provide safe and high quality veterinary and phytosanitary border control at the external borders. One of the most important basic conditions in order to be able to implement the above assignment is a set-up of appropriate facilities at border control points for the phytosanitary and veterinary control. The community requirements for approval of border posts are described in Directive 97/78/EC and Decision 92/525/EEC (both: requirements on BIP s for the import and transit of products of animal origin) and Directive 98/22/EEC (requirements on BIP s for carrying out plant health checks). The prime objectives that the veterinary border inspection should meet can be described as follows: - achieve access to all parts of the consignment; - do not alter hygienic or quality standards of the consignment; 3

3 - do not spread possible hazards of the consignments into the environment. According to the Article 6 of Directive 97/78/EEC veterinary border inspection points must be located in the immediate vicinity of the point of entry into one of the territories listed in Annex 1 and in area that is designated by the customs authorities in accordance with Regulation 2913/92/EEC. However, where necessitated by geographical constraints, a border inspection point at a certain distance from the point of introduction may be tolerated and, in the case of rail transport, at the first station stop designated by the component authority, if this inspection post complies with the Community requirements (Annex II of Council Directive 97/78/EEC and Commission Decision 92/525/EEC laying down requirements for the approval of Community border inspection posts responsible for veterinary checks on products introduced from third countries) and has been approved by the Commission. The phytosanitary border control points (according Council Directive 77/93/EEC and Commission Directive 98/22/EEC laying down the minimum conditions for carrying out plant health checks in the Community, at inspection posts other than those at the place of destination, of plants, plant products or other objects coming from third countries) will be located together with veterinary border points which is certainly the most appropriate to reduce construction costs. The planning and implementation of the project will be also based on Commission Decisions 2000/25/EC and 2000/208/EC concerning veterinary legislation covering transshipment and transit, as well as on Commission Decision 2000/571/EC which lays down controls on products of animal origin entering free zones, free warehouses or customs warehouses and on draft of Commission Decision, which lays down the requirements for the approval of border inspection posts responsible for veterinary checks on products introduced into the Community from third countries. According to the acquis at the time of accession only a limited number of border crossings will be recognized for performing veterinary and sanitary inspections. Latvia has assessed the possible border control points on the future EU external border, where it is necessary to furnish veterinary and phytosanitary control facilities for the implementation of highlevel border control. Border control points included in project have been reflected in the DG 1/TAIEX Commission Report of 2000 (Results of assessments conducted in 1998/1999 (Assessment of veterinary border inspection post requirements of Latvia)) that includes precise analysis of what type of goods are to be carried through exact points. Border control points envisaged for upgrading according to the EU requirements were selected taking into the account the flow of consignments subject to control during the previous years, as well as economic, commercial, geographical and political aspects. In 1999 the Ministry of Transportation ordered a study On Sanitary Border Inspection control post set-up in ports of Latvia. Findings of the study showed the optimum layout and locations of control posts on the basis of the current flow of goods that are subject to control and development prospects of ports. In order for the project to be successful good co-operation is very important between involved institutions. The co-operation between the main institutions involved in the control of Latvian border is rather close on a day-to-day co-operation basis. So far there are no problems that could create negative impact on this project between State Revenue Service and Sanitary Border Inspection from one side and institutions of Seaport Board (including Special economical zones) and Latvia Railroad corp. from other side. Latvia Railroad corp. is owned by state. Boards of seaports are formed from local authorities representatives (Riga, Ventspils or Liepaja) as well as from representatives from ministries of Transport, Economics, Finance, Environmental Protection and Regional Development and a representative from Latvian Development Agency. The agreements between Latvian Customs and Sanitary Border Inspection from one side and Railroad and ports authorities from other side have been reached. Ports and Railroad authorities have agreed to provide place for construction of infrastructure and where possible also co-operate in providing buildings with access to electricity, water, roads and other supplies. All infrastructure built and 4

4 equipment purchased in the framework of this project will be owned by State Revenue Service. The land on which the infrastructure will be built is owned by Ministry of Transport. Privatization of land in ports is forbidden by Law of Ports. However, there are deficiencies in the legislation in regard of free ports and special economical zones. To solve legal discrepancies draft legislation package is submitted to the Latvian Parliament on the 1 st of July 2000 (this was the obligation of Republic of Latvia for the International Monetary Fund). It includes draft amendments to 4 laws on special economic zones and free ports (Law on Riga free port, Law on Ventspils free port, Law on Liepaja special economic zone and Law on Rezekne special economic zone). It also includes draft law on application of taxes in free ports and special economic zones. In accordance with the mentioned draft laws customs clearance in the free zones will be regulated by the norms of the Customs law (the articles on the customs clearance will be taken out from the laws on special economic zones and free ports). On the 21 st of December 1999 a Protocol on amendments to the Agreement between the State Border Guards and National Customs Board was signed that approves new Standard technological scheme for all road border-crossing points. The Standard technological scheme is signed by the Head of the Border Guards, the Head of the Sanitary Border Inspection and Director of the National Customs Board. The scheme describes responsibilities and activities of all 3 border control institutions at the border control points, and organization of work at the border control points. In accordance with the Standard scheme the technological schemes are being prepared for all road border-crossing points. The co-operation between Customs and Sanitary Border Inspection takes place on the basis of Memorandum of mutual co-operation concluded between the Ministry of Agriculture and State Revenue Service on the 5 th of August This Memorandum states that State Revenue Service and Ministry of Agriculture shall co-operate to prevent infringements of customs regulations, particularly in the fields of foodstuffs and drug smuggling in Latvia. Both institutions shall cooperate in development and enforcement of united co-operation strategy in order to ensure a public health protection within its limits and resources. The proper enforcement of the Memorandum is ensured with signing and implementation of the technologies (technological schemes) for the border crossing points, including special technologies for railroad border control points (see Annex 12). Such documents processing technologies exist for both Rezekne and Daugavpils railroad control points. In Riga railroad control point Skirotava mutual co-operation between services involved takes place on the same principles and grounds as in Rezekne and Daugavpils. Customs and Sanitary Border Inspection will work together already within Phare 2000 project Integrated Border Management Strategy. For effective work of customs it is necessary that the staff is correctly trained and that the level of education is sufficiently high. The level of education is set as very important issue for personnel. The level of education in the SRS increases. In regions at present 32% have higher, 37% - secondary professional and 30% - secondary education. 18% are currently studying in universities and colleges. In central administration 66% of employees have higher education, 16% - secondary professional and 16% - secondary education. 10% are currently studying. The quality and infrastructure of the training is being increased. There is a central Training centre in the SRS and in two largest regional offices (Daugavpils and Jelgava). There has been decrease in turnover of the personnel in Customs service from 58% in 1994 to 5,3% in The SRS Training Division performs the training function both for customs and tax purposes. Customs officers receive 6 weeks training course before they start work. Other training is provided when necessary. The Institute of International Economical Relations and Customs is operational under Riga Technical University that gives higher education. At the same university there is Customs College where it is possible to obtain secondary professional education. 5

5 Development of the efficient customs border control points is a priority defined also in State Revenue Service (SRS) Investment Strategy, which was approved and signed by the SRS Director General. The SRS Investment Strategy indicates the key objectives and tasks for efficient performance of the customs and tax administration and protection of the public interests. The following statement is one of the priorities of the SRS Investment Strategy: To fight against unfair competition, smuggling, illegal trade. In order to ensure the implementation of the Rules of the Cabinet of Ministers of No. 246 Rules on the Establishing the State Border Crossing Points, Border-lines and on the Location of the Border Control Points on the State Border of the Republic of Latvia and effective customs control, it is necessary to build new Customs Control Posts and to modernise the existing ones by equipping them with the scales, video-monitoring system and cargo control complex and equipment. Moreover improvement of the customs control infrastructure is outlined in SRS Customs Long-term Investment Plan ( ), which is overall strategic plan regarding the upgrading of border crossing points. All actions foreseen by this project are included in Long-term Investment Plan and are fully coherent with it. Up to now high attention has been paid towards the improvement of the customs control infrastructure on the road customs points of the Eastern Border. All road customs control points on the Eastern border (Terehova, Paternieki, Grebneva, Silene) have been constructed with financial support of Phare and Public Investment Programme. However the development of Customs and Sanitary Border Inspection infrastructure on railroads and in seaports is very important as there is a quite heavy trade flow through these routes therefore development of these points is the next step envisaged in Public Investment Programme. Both institutions Customs and Sanitary Border Inspection are involved in the project in order to decrease the necessary funds for the development of Customs and Sanitary Border Inspection points. The costs of feasibility studies, project and implementation and building will be lower as the infrastructure will be partially common for both institutions. The State Revenue Service is Responsible for the construction of Customs and Sanitary Border Inspection Control points; In seaports the construction is co-ordinated by the Board of the specific port and on railroad the Latvia railways corp. The implementation of this project will be the continuation of the Phare 2000 project "Development of integrated Latvian border management and infrastructure". Project includes improvement of the border control mechanisms by definition of responsibilities for each of involved institutions including the control on the railway, in the see ports and airports and preparation of the common action plan about the control mechanism on the railway, in the see ports and airports. This action plan will be used as a basis for development of technological schemes and organization of the work in border control points. 3.2 Linked activities: The implementation of this project will be the continuation of the Phare 2000 project "Development of integrated Latvian border management and infrastructure". To strengthen the Latvian border control the following Phare projects are in the preparation and implementation stage: In the framework of LE Agriculture : Pilot project to create a border inspection system (phytosanitary) inline with EU standards - 0,031 MEURO; - completed 6

6 Pilot project to create a border inspection system (veterinary) inline with standards - 0,096 MEURO; - completed LE Latvian German French twinning project Support of the Latvian Ministry of Agriculture to implement the Acquis Communautaire of the EU, project started 1998 and is ongoing - 0,600 MEURO. (Practical training and expert assistance to the Sanitary Border Inspection in the phytosanitary field.) LE (Training and expert assistance to the Latvia Border Guards on border management procedures), Latvian National PHARE 1998 allocation - 1 MEUR (ongoing); LE Latvian Eastern Border Management and Infrastructure", Latvian National PHARE 1999 allocation MEUR (preparation of technical documentation and submission to CFCU for the start of tendering process). PHARE 2000 Development of integrated Latvian border management and infrastructure 5,140 MEURO. (In the framework of this project, integrated border management strategy will be developed. This strategy will be concerned with road crossing points, railroad crossing points and seaports). Supplementary Investment Facility LV Development of Latvian Eastern Border infrastructure/ Latvian State border with Russia. The project is financed from the Phare 2000 additional funds. The EU contribution is 1.75MEUR. It is foreseen that within this project two border guards stations (Skilbene, Lavasnieki) will be built. Within the SRS twinning No. LE-99/IB/F1/01 Improvement of the State Revenue Service (tax and customs management development and training facilitation) the pre-arrival control system in Riga seaport will be established. The timetable is already set for this task and the system will be implemented by November The physical control of goods using the new infrastructure built within PHARE 2001 project will be performed using the pre-arrival control system established within the SRS twinning project. The investments of Latvian government for development of infrastructure on Latvian land border are included in the Public investment programme and are following: IA-16 Development of infrastructure of the Eastern Border, total amount 53,580 Mio. Ls, ; IA-20 Renovation of the Latvian State Borders, Total amount 1,822 Mio. Ls, ; IA-22 Creation of a technological border protection, control and information system on the Eastern border, Total amount 23,547 Mio. Ls, The Government of the Republic of Latvia and European Commission has signed the Memorandum of Understanding on Introduction of Phare Border crossing Modernisation and Transit development Program: Latvian investments 14.3 MEUR, Phare investments 7.1 MEUR (All projects below concern road border crossings). MOU ZZ Terehova, Phare, EUR MOU ZZ Terehova, Phare EUR Paternieki, Phare EUR MOU ZZ Grebneva, Phare EUR Paternieki, Phare EUR MOU ZZ Grebneva, Phare EUR Silene, Phare EUR MOU ZZ

7 Silene, Phare EUR. The investments of Latvian government for modernisation and construction of customs border posts are included in the Public investment programme and are following: OP-03 Customs Border Posts, total amount 23,672 Mio.Ls, Results: Modern and appropriate border control equipment for both Customs and Sanitary Border Inspection purposes will result in improved customs, veterinary and phytosanitary control, increased detection rate, diminishing of unfair competition and decrease of the time of cargo control. As result of the project the water border and railway points of Sanitary Border Inspection on the borders of Latvia for carrying out veterinary and phytosanitary control functioning in compliance with European Union requirements. The result of the project will include: Improved and equipped customs control points on railroad (Rezekne, Daugavpils and Riga) technological examination trestlework, cargo control buildings, dynamical railroad scales, refrigerator and small warehouse for storage of detained goods; Improved and equipped customs control points in the largest seaports (Riga, Ventspils and Liepaja) cargo control buildings and scales; Built and equipped veterinary and phytosanitary control points in the seaports (Riga, Ventspils) Built and equipped veterinary and phytosanitary control points on railroad (Rezekne, Daugavpils); Improved customs, veterinary and phytosanitary control; Increased detection rate; Better working environment for the staff involved in customs, veterinary and phytosanitary control. The current weak points of the customs infrastructure will be strengthened and it will be possible to perform faster and more efficient examination of the cargo on railroads and in seaports Activities: All activities consist of 2 components (3 sub-components each): Facilities Technological examination trestlework Cargo control complex X-ray equipment for containers Scales Component 1. Railroad ** 1.1. Daugavpils* X X X 1.2. Rezekne* X X X 1.3. Riga X X X 2. Seaports *** 2.1. Riga* X X X 2.2. Ventspils* X X 2.3. Liepaja X - At these points technological examination trestlework, scale, cargo control building comprise Sanitary Border Inspection facilities. 8

8 ** Railroads Railroad dynamical scales Railroad dynamical scales are facility that allows checking the weight of each wagon of train, while train keeps moving at slow speed (approximately 20 km per hour). The whole investment consists of scales that are constructed directly on the rails, technical equipment (computer to record data, video camera to check numbers of wagons) and office facilities. Technological examination trestlework Technological examination trestlework is a shelter (with roof) that is built over the rails. It includes bridge over the wagon so it would be possible to take physical examples, to measure amount in tank-wagons and to check sealing. At present customs officers have to use transferable ladder. Cargo control complex Cargo control complex includes cargo control hangar and control area for veterinary and phytosanitary control, lifts and refrigerator. More detailed description in Annex 5. *** Seaports Cargo control complex Cargo control complex includes cargo control hangar and control area for veterinary and phytosanitary control, lifts. More detailed description in Annex 5. Platform scales Platform scales are built directly on the line in customs checkpoint and allow checking the weight of cargo trucks Mobile X-ray Mobile X-ray equipment for containers Component 1 - Improvement of Customs and Sanitary Border Control infrastructure on railroads This component consists of three sub-components: Sub-component 1.1 Improvement of Customs and Sanitary Border Inspection infrastructure in Daugavpils commodity station Upon analyze of current flow of freights subject to the control of Sanitary Border Inspection, the control point is envisaged to be upgraded to fit the following control: 1. control of products of animals origin, all sorts; 2. control of products subjected to phytosanitary control. In order that Daugavpils customs and Sanitary Border Inspection control point to become aligned with the EU requirements for carrying out the veterinary and phytosanitary and customs control there is a need for: Railroad dynamical scales; Technological examination trestlework; Cargo control buildings (more details in Annex5); control warehouse; lift; 9

9 control area for veterinary and phytosanitary control; refrigerator; Equipment necessary for the control will be provided from the state budget. Inputs: Construction; Outputs: built and equipped customs,veterinary and phytosanitary control infrastructure in Daugavpils Commodity station in line with the EU requirements; improved facilities to make veterinary and phytosanitary control; improved working environment for the customs and Sanitary Border Inspection personnel; decrease in the time of physical examination of goods; higher percentage of hits during examination of goods. Sub-component 1.2 Improvement of Customs and Sanitary Border Inspection infrastructure in Rezekne commodity station Upon analyze of current flow of freights subjected to the control of Sanitary Border Inspection, the control point is envisaged to be upgraded to fit the following control: 1. control of products of animals origin, all sorts; 2. control of products subjected to phytosanitary control; In order that Rezekne customs and Sanitary Border inspection control point to becomes aligned with the EU requirements for carrying out the veterinary and phytosanitary and customs control there is a need for: Railroad dynamical scales; Technological examination trestlework; Cargo control buildings (more details in Annex 5); control warehouse; lift; control area for veterinary and phytosanitary control; refrigerator. Equipment necessary for the control will be provided from the state budget. Inputs: Construction; Outputs: built and equipped customs, veterinary and phytosanitary control infrastructure in Rezekne Commodity station in line with the EU requirements; improved facilities to make veterinary and phytosanitary control; improved working environment for the customs and Sanitary Border Inspection personnel; decrease in the time of physical examination of goods; higher percentage of hits during examination of goods. Sub-component 1.3 Improvement of Customs infrastructure in Skirotava (Riga) railway point 10

10 In order for this customs point to become aligned with the EU requirements for carrying out customs control there is a need for: Railroad dynamical scales; Technological examination trestlework; Cargo control buildings (more details in Annex 5) ; control warehouse; lift; refrigerator. Equipment necessary for the control will be provided from the state budget. Inputs: Construction; Outputs: built and equipped customs control infrastructure in Riga railroad station in line with the EU requirements; improved working environment for the customs personnel; decrease in the time of physical examination of goods; higher percentage of hits during examination of goods. Component 2 Improvement of Customs and Sanitary Border Inspection infrastructure in seaports The findings of the study "On Sanitary Border Inspection control post setup in ports of Latvia contain a proposal to build the central control points at Riga Trade Port and Ventspils Freeport with several control points at each of them. This project component consists of three sub-components: Sub-component 2.1 Improvement of customs and Sanitary Border Inspection infrastructure in Riga seaport During the recent years, the turnover and variety of freights subjected to veterinary, phytosanitary; harmlessness and safety control is steadily increasing. Therefore, in order to enable efficient and quality servicing of the freights subjected to these controls, 2 border control points and one control site have been established at the Port of Riga: 1. Central Control Point of Riga Port with three control locations: Riga Krasta (Riga Bank Station) Riga Passenger Terminal Trade Port of Riga 2. Fishing Port of Riga ; 3. Control site Port of Daugavgriva. Central Control Point of Riga Port Central Control Point of Riga Port, three control sites are operating: Riga Krasta (Riga Bank Station) Riga Passenger Terminal Trade Port of Riga 11

11 Control site Riga Krasta control of freights received in the part of Riga Trade Port located beside to Cold storage and grain elevator. In this part of the port, the unloading of bulk cargo vessels and refrigerator vessels is taking place. Riga Passenger Terminal control of freights received from Sweden, Germany, and the Netherlands. All ferry lines are from member states of EU. Trade Port of Riga located next to the gate of free port territory at Uriekstes street; control of freights transported in containers. Office premises have been equipped for maintenance of control point; nevertheless, there are no storage premises, refrigerator sections, and physical control equipment available. The forecast is, that such distribution of freights that are subjected to control will prevail also in the future. Therefore the location of Central Control Point of Riga Port is planned here, from where the control at other sites and other port areas of all groups of goods subjected to control and to be transported by trucks or in containers may be coordinated. Fishing Port of Riga Fishing Port of Riga services freights transported by refrigerator vessels, as well as general freights. The freights are being loaded from vessels to other means of transport, or stored in refrigerators for short terms.80% of freights subjected to control are provided for third countries. Port of Daugavgriva Freight turnover in this port is unessential. Basically, freights are forwarded for export. As to the current state, it is not necessary to maintain dedicated premises for carrying out of special controls. Taking regard at current flow of freights subject to the control of Sanitary Border Inspection at Riga port, as well as the development prospects and plans of Riga port, it is necessary to establish the following control points and control sites at Riga port: 1. Central Control Point in the territory of Riga Trade Port; 2. Control sites: Beside Cold storage in the territory of Riga Trade Port; Fishing Port of Riga; This project component foresees building of necessary facilities to carry out veterinary and phytosanitary control with EU requirements in the Riga port. In case of implementation of the project, the construction and equipment of Central Control Point in accordance with the requirements of EC in the territory of Riga Trade Port is provided. It is envisaged to be upgraded control point to fit the following control: 1. control of products of animals origin, all sorts; 2. control of products subjected to phytosanitary control; In order for Riga seaport customs, veterinary and phytosanitary control point to become aligned with the EU requirements for carrying out customs control there is a need for: Cargo control infrastructure (more details in Annex 5): cargo control hangar; control area for veterinary and phytosanitary control; lifts; platform scales; X-ray equipment for containers. Equipment necessary for the control will be provided from the state budget. 12

12 Inputs: Construction; Outputs: built and equipped customs,veterinary and phytosanitary control infrastructure in Riga seaport in line with the EU requirements; improved facilities to make veterinary and phytosanitary control; improved working environment for the customs and Sanitary Border Inspection personnel; decrease in the time of physical examination of goods; higher percentage of hits during examination of goods; availability to check containers. Sub-component 2.2 Improvement of customs infrastructure and Sanitary Border Inspection in Ventspils seaport Upon analyze of current flow of freights subjected to the control of Sanitary Border Inspection, and consideration of development prospects of the port of Ventspils, it is being planned to establish: 1. Central Control Point in the Container Terminal of the Free port of Ventspils 2. Control site in the Fishing Port of Ventspils. This project component foresees building of necessary facilities to carry out veterinary and phytosanitary control with EU requirements in the Free port of Ventspils. In case of implementation of the project, the construction and equipment of Central Control Point in accordance with the requirements of EU in the Container Terminal of the Free Port of Ventspils is provided. It is envisaged to be upgraded control point to fit the following control: 1. control of products of animals origin, all sorts; 2. control of products subjected to phytosanitary control. In order for Ventspils seaport customs, veterinary and phytosanitary control point to become aligned with the EU requirements for carrying out customs control there is a need for: Cargo control infrastructure (more details in Annex 5): cargo control hangar; control area for veterinary and phytosanitary control; lifts; platform scales. Equipment necessary for the control will be provided from the state budget. Inputs: Construction; Outputs: built and equipped customs, veterinary and phytosanitary control infrastructure in Ventspils seaport in line with the EU requirements; improved facilities to make veterinary and phytosanitary control; 13

13 improved working environment for the customs and Sanitary Border Inspection personnel; decrease in the time of physical examination of goods; higher percentage of hits during examination of goods. Sub-component 2.3 Improvement of customs infrastructure in Liepaja seaport In order for Liepaja seaport customs control point to become aligned with the EU requirements for carrying out customs control there is a need for a platform scales. Inputs: Installation. Outputs: built and equipped sea-port Customs control infrastructure in Line with the EU requirements; improved working environment for the customs personnel; decrease in the time of physical examination of goods; higher percentage of hits during examination of goods. 4. Institutional Framework For the implementation of this project the Steering Committee will be established, that will include the representatives from State Revenue Service, Sanitary Border Inspection, Ministry of Finance, Ministry of Transportation, Latvian railroad corp., Riga Freeport Board and Ventspils Freeport Board. The head of this committee will be Mrs. Valentina Andrejeva - State secretary of Ministry of Finance. PROJECT MANAGEMENT STRUCTURE Steering Committee Core Committee State Revenue Service Sanitary border inspection Latvian railways corp. Riga Freeport Ventspils Freeport Liepaja port 14

14 The Steering Committee will comprise the following members: V. Andrejeva - State secretary of Ministry of Finance; A. Sonciks Director General of State Revenue Service; A.Krastins Director of SRS National Customs Board; M. Kaprane Director of SRS Maintenance Board; J.Kinna Head of Sanitary Border Inspection; representative from the Ministry of Transport; representative from the Latvia railroad corp.; L. Loginovs Superintendent of Riga Freeport; I. Sarmulis Superintendent of Ventspils Freeport; These members shall comprise the core committee. The following members will attend when the core committee will deal with their respective matters; and additionally may be required to sit at a joint meeting at the request of the core committee. The core committee will comprise following members: O.Zikuna Head of European Integration Division, SRS National Customs Board; I.Sice Deputy Head of Sanitary Border Inspection; D. Bedritis Head of Construction and Maintenance Division of the SRS Maintenance Board; representative from the Ministry of Transport; representative from Latvia railroad corp.; representative from Riga Freeport; representative from Ventspils Freeport; representative from Liepaja port; The Steering Committee will be responsible for performance of following functions: determining the strategic directions of the project; ensuring that the project is commensurate with the aims and objectives of the Latvian Government and the requirements of EU; approving plans, terms of reference and any amendments thereto; monitoring the process against plans, and approve actions to be taken to correct any major deviations from plans; monitoring, trough reports expenditure against budgets, and progress against the business cases; resolving disputes which are referred to the committee, having failed to be resolved by Project Boards, or Project Directors as appropriate. The Steering Committee will be called 3 times per month during the preparation of technical documentation and once a month during the implementation of the project. The technical co-ordinator of the project on day-to-day basis will be SPO Mrs. Oksana Zikuna, SRS National Customs board; Responsibility for implementation of the separate components lies within respective institutions: Sub-component SRS National Customs board, Sanitary Border Inspection, Latvia railroad Corporation; Sub-component SRS National Customs board, Sanitary Border Inspection, Latvia railroad Corporation; Sub-component SRS National Customs board, Latvia railroad Corporation; Sub-component SRS National Customs board, Sanitary Border Inspection, Riga Freeport Board; 15

15 Sub-component SRS National Customs board, Sanitary Border Inspection, Ventspils Freeport; The State Revenue Service is Responsible for the construction of Customs and Sanitary Border Inspection Control points; In seaports the construction is co-ordinated by the Board of the specific port and on railroad the Latvia railroad corp.; Customs 15 road control points 17 railway control points 19 seaport control points 2 airport control points The responsibility of the Customs Service of Latvia is protection of state economy, domestic market and society by controlling the movement of prohibited goods across the border of the Republic of Latvia, such as control of drugs, psychotropic substances, precursors, strategic goods, nuclear materials, weapons, radioactive substances. The collection of customs payments will be a high priority task for the foreseeable future. The priority of customs is to develop and implement trade facilitation mechanisms, which will minimize the costs of customs procedures to legitimate trade. Besides Customs Service is responsible of collection of foreign trade and customs statistics. Sanitary Border Inspection. 14 road control points 4 railway control points 3 seaport + 4 control points 80 warehouses with 15 control points 1 airport control points 1 control point in Latvian Post Office The Sanitary Border Inspection is a state civil institution subordinated to the Ministry of Agriculture, providing and carrying out control over certain import, export and transit consignments defined by the Cabinet of Ministers on the state border within the scope of its authority. Sanitary Border Inspection was created with Instruction of Cabinet of Ministers No. 144 of 12 of March Basic assignments of the Sanitary Border Inspection are to control the compliance of consignments with veterinary, phytosanitary and hygienic requirements of the Republic of Latvia, as well as to prevent importing of consignments that does not comply with such regulations and substandard consignments in the state and to check the compliance with transportation rules and regime of consignments subject to control. All infrastructure built and equipment purchased in the framework of this project will be owned by the State Revenue Service. The land on which the infrastructure will be built is owned by the Ministry of Transport. Privatisation of land in ports is forbidden by Law of Ports. 5. Detailed Budget (MEUR) Contract 1 (Railroad) Phare Support Investment Institution Support Building Total Phare (=I+IB) National Cofinancing * IFI* TOTAL

16 Contract (Seaports) Contract (Mobile x-ray) Total * - It is envisaged that EUR of National co-financing will be allocated for supervision of works The total financing necessary to upgrade the existing border control posts in line with EU requirements amounts to 9.51 million EURO (rounded). 25% of co- financing of the value of project necessary for implementation of the present project is provided from the government budget financing Public Investment Programme and 75% from PHARE budget. The share of Latvian financing for upgrading of border control posts within the framework of PHARE project takes up 2.38 million EUR (necessary amount of money is included in state budget ), the share of PHARE financing: 7.13 million EUR, accordingly. 6. Implementation Arrangements 6.1 Implementing Agency This will be the responsibility of the Central Financing and contracting unit (CFCU), PAO Ms. Valentina Andrejeva, State Secretary, Ministry of Finance; Smilsu 1, Riga Latvia, LV-1050; phone , fax The overall technical responsibility is under SRS National Customs Board. SPO Mrs. Oksana Zikuna, Head of EU Integration Unit of Customs Modernisation Division of SRS National Customs Board, Kr. Valdemara 1a, Riga, Latvia, LV-1841; phone , fax Project owner and implementer: Ministry of Finance. Project implementation controller: Steering Committee, Head Mrs. V.Andrejeva State Secretary of Ministry of Finance No Twinning is included in the project 6.3. Contracts There are 3 contracts foreseen: Works Contract 1 (Railroad) 2.89M Works Contract 2 (Seaports) M Supply Contract 3 (Mobile x-ray) 1.725M 7. Implementation Schedule 7.1 Start of tendering/call for proposals: January Start of project activity: July Project Completion: June Equal Opportunity Participation in the project will require professional qualifications and competence in the particular area and will allow an equal opportunity for women and men to participate in implementation of the project. 17

17 9. Environment The buildings of Customs and Sanitary Border Inspection and the operation thereof are harmless to environment. They must be built and maintained according to national laws, which in their requirements are coherent with EU regulations. During elaboration of project it is necessary to get permissions from regional Environmental Board and local division of National Environmental Health Centre. After completion of project preparation, all construction projects are subject to approval by Construction Projects Expertise Department of State Environment Expertise Board. 10. Rates of return Not applicable 11. Investment criteria 11.1 Catalytic effect: In case of implementation of the project, control buildings complying with the requirements of EC would be equipped in the prospective external border control points of EC on sea border of Republic of Latvia and on railways. Control points would be furnished with the necessary equipment for securing of efficient customs, veterinary and phytosanitary, as well as harmlessness and safety control; the possibilities of control would be improved to maximum degree Cofinancing: Funding of the project consists of Phare (75%) and State investment programme of the Republic of Latvia (25%) Additionality: 11.4 Project readiness and Size: All actions of the project will respect the competition provisions of the Phare procurement rules. Contractor will be selected in open tendering process in EU member states and Phare countries Sustainability: Implementation of this project will be completed at the end of Operation and maintenance costs will be covered from the State budget Compliance with state aids provisions The investments fully comply with the state aids provisions of the European Agreement. 12. Conditionality and sequencing Implementation of the project is conditional upon the findings of the expertise (needs assessment) carried out by independent experts. Adequate co-financing included in the state budget. 18

18 Before start of project activities, all necessary feasibility studies will be completed and they will be financed from national sources. ANNEXES TO PROJECT FICHE 1. Logical framework matrix 2. Detailed implementation chart 3. Contracting and disbursement schedule by quarter for full duration of programme (including disbursement period) 4. List of relevant Laws and Regulations 5. List of Infrastructure facilities to be built 6. Detailed Budget 19

19 Annex 1 LOGFRAME PLANNING MATRIX FOR Project Inspection infrastructure at seaports and railroad border crossings Programme name and number LE Contracting period expires Disbursement period expires Total budget : EUR 9.51 million Phare budget : EUR 7.13 million Overall objective Indicators of Achievement Sources of Information Ensure proper functioning of controls at future EU external borders Appropriate, effective customs and sanitary Objects and equipment are border control on Latvian border documented Constructed and equipped objects are in place Project purpose Indicators of Achievements Sources of Information Assumptions Equipping seaports and railroad border crossings to perform customs, veterinary and phytosanitary inspections Control operations on the border are performed in a most effective and efficient manner corresponding also to the standards of EU border control Statistics of offences discovered in field of customs and sanitary border control Amount of additionally calculated customs debt Trade reports Increased trade flow with CIS countries; Improvement of infrastructure on transit routes (seaports, railroad) State finance ensured Results Indicators of Achievement Sources of Information Assumptions Improved and equipped customs control points on railroad decrease in time necessary for the physical Objects and equipment are Re-allocation of customs and (Rezekne, Daugavpils and Riga) technological examination control (estimated - 50%); documented; Sanitary Border Control trestlework, cargo control buildings, dynamical railroad scales, higher percentage of hits during the physical Constructed and equipped resources; refrigerator and small warehouse for storage of detained goods; examination (estimated 25%); objects are in place; Continuation of SRS Improved and equipped customs control points in the largest Increased detection rate Customs and Sanitary border Modernisation; seaports (Riga, Ventspils and Liepaja) cargo control buildings inspection statistics. Unexpected changes in trade flow and scales; of goods. Built and equipped veterinary and phytosanitary control points in the seaports (Riga, Ventspils) Built and equipped veterinary and phytosanitary control points on railroad (Rezekne, Daugavpils); Improved customs, veterinary and phytosanitary control; Increased detection rate; Better working environment for the staff involved in customs, veterinary and phytosanitary control. Activities Means Assumptions 20

20 Project project preparation Component 1.1 Daugavpils commodity station implementation of railroad dynamical scales, building of technological examination trestlework, construction of cargo control complex, implementation of refrigerator. Component 1.2 Rezekne commodity station implementation of railroad dynamical scales, building of technological examination trestlework, construction of cargo control complex, implementation of refrigerator. Component 1.3 Riga (Skirotava) station implementation of railroad dynamical scales, building of technological examination trestlework, construction of cargo control complex, implementation of refrigerator. Component 2.1. Riga seaport implementation of platform scales (for cargo control), construction of cargo control complex, delivery and set-up of mobile X-ray equipment. Component 2.2. Ventspils seaport implementation of platform scales (for cargo control), construction of cargo control complex, Component 2.3. Liepaja seaport implementation of platform scales (for cargo control), Design (financed by National budget) Construction works Project documentation Contractors reports on built infrastructure The actual location of construction is co-ordinated with Seaports board and Latvia Railroad Corp. Preconditions Adequate staffing of all the institutions involved Stable political course Internal political goal to undergo administrative and structural changes Full commitment from the beneficiary to transparently cooperate with external project experts 21